Sunday, 23 October 2016

Alstom to Build New Factory in Cheshire

Alstom has started construction at the new site in Widnes, Cheshire, which will create about 600 jobs. The firm aims to win contract to manufacture trains for HS2.
The French train company Alstom is building the new multimillion-pound
plant in the north-west of England, delivering a major boost to the
region during a time of uncertainty about Britain’s exit from the
European Union.
Alstom will spend an initial £20m on a new site at Widnes, Cheshire,
creating about 600 jobs. The facility will modernise the Pendolino
trains on the west coast mainline and contain a training academy, but it
could eventually manufacture new rolling stock if Alstom wins a
contract to produce trains for London Underground or HS2.

The company have a contract to modernise the West Coast Pendolino trains

Alstom has also been chosen to provide maintenance support for the
Class 180 trains operated by Grand Central Railway Company Limited for
the next ten years, from January 2017 until December 2026
The Paris-based company is making the investment in Britain despite
concerns about the cost of importing and exporting products after the
country leaves the EU and doubts about the future of the HS2 rail
project. Carlos Ghosn, the chief executive of Nissan, warned last week
that Brexit threatens Britain’s vehicle manufacturing industry and he would look for compensation from the government before committing to new investments.
However, Nick Crossfield, the managing director of Alstom for UK and
Ireland, said the French company is “fundamentally committed” to the UK
market. He also described HS2 as an “incredibly important and
transformational investment” for the UK. Crossfield said the investment in Widnes represented a “step change” for Alstom’s approach to the UK.
It also highlights the revival in Britain’s train manufacturing
industry. A decade ago Britain was left with only one train manufacturer
– Bombardier in Derby – after a string of closures. However, Hitachi, the Japanese conglomerate, opened a plant in County Durham last year and Alstom’s announcement is another boost.

“It is a step change in terms of the type and nature of investment
that we have made in the UK,” Crossfield said. “ It is a fundamental
step in a direction that sees us delivering a much broader capability in
the UK market. The UK market is one of the most high profile and
important for Alstom worldwide.”
The 30-acre site is due to open next year. The facility will grow
“according to the opportunities that we win”, Crossfield added, and is a
“foothold that provides us with a base to expand even further”.
The Alstom boss said the company had not reconsidered the project
despite Britain’s vote to leave the European Union:“One of the major
issues with UK rail right now is capacity, and that is underpinning all
of the investment that is going in.
“While the EU question is important for the country as a whole,
people still need to get on trains to get from A to B and we see no
reason why that investment will change.
“We are fundamentally committed to the UK market. Its strategic
importance, its size and its dynamics were not impacted by [Brexit],” he
added.
“Other than some of the very limited foreign exchange volatility, we have not seen any major impact to our business. For us, it is business as usual. We are in a
business that is based on long-term fundamentals like population growth
and industrial development and that continues as before.”
Alstom has confirmed it will bid to build the trains for HS2 and
unveiled plans for double-decker carriages. It is also bidding for the
New Tube for London contract, which is worth up to £2.5bn and involves
designing and building 250 next-generation trains for the Piccadilly,
Bakerloo, Central and Waterloo & City lines in London.
Crossfield said that even if the government scrapped HS2, which is
estimated to cost more than £40bn, it “would not change the investment
perspective for us here in the UK because there is a very significant
and healthy domestic rolling stock market”.
Nonetheless, Crossfield said HS2 is a “very significant opportunity”
for Alstom, with the company eyeing up the contracts to build rolling
stock and infrastructure for the network. He said it was “too early to
say” whether the trains would be built in the UK if Alstom won the
contract, but some work is but some work is likely to be conducted in Widnes. The company
employs 32,000 people around the world, including 3,200 at 12 UK sites.

Theresa May confirmed at the Conservative party conference that the
government will “press ahead” with HS2, and Alstom has welcomed the
government’s comments.
“It is a very crucial and important infrastructure project that
should go ahead,” Crossfield said. “I was at the Conservative party
conference over the last couple of days speaking at a couple of fringe
events and the government remains committed to HS2 in a very vital way. I
think it is an incredibly important and transformational investment for
the country.
“There were very specific comments made in the last 48 hours of the
conference in regard to continued support for HS2 and when you look and
talk to the people involved in that project within government it is
clear there is significant momentum. There is no dilution in commitment to that project at all.”
Alstom remains under investigation by the Serious Fraud Office
over corruption allegations regarding overseas contracts. Seven
individuals have been charged as part of the investigation, which relate
to consultancy agreements signed in 2001, 2002 and 2004. One of the
individuals who has been charged is Terence Watson, who stepped down as
president of Alstom UK earlier this year and was replaced by Crossfield –
who was promoted from his role as managing director of train control.
Watson is contesting the charges.
Crossfield said the investigation “does not effect or impact what we
are doing”, adding: “It’s not on my day-to-day agenda in terms of how I
run the business.

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